Correlation Between PT Indo and Fresenius
Can any of the company-specific risk be diversified away by investing in both PT Indo and Fresenius at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PT Indo and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Indo Tambangraya and Fresenius SE Co, you can compare the effects of market volatilities on PT Indo and Fresenius and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PT Indo with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indo and Fresenius.
Diversification Opportunities for PT Indo and Fresenius
Very good diversification
The 3 months correlation between 3IB and Fresenius is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding PT Indo Tambangraya and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and PT Indo is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PT Indo Tambangraya are associated (or correlated) with Fresenius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresenius SE has no effect on the direction of PT Indo i.e., PT Indo and Fresenius go up and down completely randomly.
Pair Corralation between PT Indo and Fresenius
Assuming the 90 days trading horizon PT Indo Tambangraya is expected to generate 2.03 times more return on investment than Fresenius. However, PT Indo is 2.03 times more volatile than Fresenius SE Co. It trades about 0.19 of its potential returns per unit of risk. Fresenius SE Co is currently generating about -0.12 per unit of risk. If you would invest 145.00 in PT Indo Tambangraya on August 28, 2024 and sell it today you would earn a total of 16.00 from holding PT Indo Tambangraya or generate 11.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Indo Tambangraya vs. Fresenius SE Co
Performance |
| Timeline |
| PT Indo Tambangraya |
| Fresenius SE |
PT Indo and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indo and Fresenius
The main advantage of trading using opposite PT Indo and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indo position performs unexpectedly, Fresenius can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fresenius will offset losses from the drop in Fresenius' long position.| PT Indo vs. Mitsui Chemicals | PT Indo vs. Corporate Travel Management | PT Indo vs. Dave Busters Entertainment | PT Indo vs. XLMedia PLC |
| Fresenius vs. LEGACY IRON ORE | Fresenius vs. SIMS METAL MGT | Fresenius vs. Jacquet Metal Service | Fresenius vs. COSMOSTEEL HLDGS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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